China wants oil. Older oil fields and refineries, increasing internal demand, and “enhanced national security from mitigating Middle East oil” are driving China’s international hunt for more petroleum resources.

According to the Chinese Academy of Social Sciences, 64.5% of the oil consumed by the country in 2020 will be imported. China is moving to secure supplies through corporate acquisitions (Addax Petroleum); outright purchases (Petroecuador received a $1-billion advance payment to export nearly 3 million barrels of crude per month to China); and stakes in licenses (Marathon and Chinese state firms Sinopec and CNOOC will share Block 32, offshore Angola).

In addition, loans-for-oil agreements have been struck with state firms in Brazil and Russia. Sinopec and CNOOC will access 150,000 barrels per day for one year and 200,000 barrels per day for the next nine years from Petrobras, and Russian state firms have guaranteed a 20-year supply of oil in exchange for Chinese loans.

Furthermore, China National Petroleum Corp. is talking with Spanish-based Repsol and is looking to cooperate with other countries, including Kazakhstan, Venezuela and Qatar. A Chinese bank has already agreed to help finance a $1.5-billion project to increase output in Iran’s Ressalat oil field, and Sinopec plans to jointly build a petrochemical complex in Tianjin, China, with Saudi Basic Industries Corp.(SABIC).

—Larry Prado

1 Colombia

Pacific Rubiales of Toronto, Canada, has announced an oil discovery at its #I-9 ST-2 well drilled on Prospect I at the Quifa Block in Colombia’s Llanos Basin. The #I-9 ST-2 well found a vertical oil column of 41 ft. gross between the top of the basal sandstones at 2,038 ft. and the oil-water contact at 2,081 ft. Evaluation of well data indicates a net pay zone of 18 ft. with porosities over 30%. The well was drilled to 3,563 ft. in the Quifa Block and will be tested across perforations at 3,175-90 ft. According to IHS Inc., the company plans to drill four additional wells in the Quifa block before the end of 2009.

2 North Sea

In the U.K. sector of the North Sea, Talisman Energy has a discovery on the Shaw prospect in Block 22/22a. The find was made adjacent to the Godwin discovery. The well tested at 4,800 bbl. of oil equivalent per day on a restricted choke. The Calgary-based company is currently drilling an appraisal sidetrack. Additional details are not currently available.

3 Norway

According to E&P Daily, Lundin Petroleum’s offshore Norway Luno discovery contains proven and probable reserves of 95 million bbl. of oil equivalent. The #16/1-8 discovery was drilled in late 2007, and appraisal well #16/1-10 was completed in early 2009. Lundin plans to drill additional exploration wells in Production License 338 this year that target the Luno extension prospect. The company also plans tests this year and next on PL 359, 410 and PL 501. Lundin, headquartered in Stockholm, holds interests between 40% and 70% in the latter blocks.

4 Bulgaria

East of Galata Field a Melrose Resources Plc offshore appraisal penetrated the top of the Paleocene reservoir interval at a depth of 2,679 ft. and encountered 67 ft. of net gas pay. The #2 Kaliakra was drilled to appraise the Kaliakra gas discovery which is located approximately 15 kilometers east of Galata Field’s production platform and approximately 1.8 kilometers west of #1 Kaliakra. Testing on the #2 showed average porosity in excess of 30%. Results indicate that Kaliakra Field contains reserves of around 57 billion cu. ft. Melrose’s headquarters are in Edinburgh, Scotland.

5 Russia

Petrom SA of Bucharest, Romania, confirmed an oil and gas discovery in the exploration well #1 Lugovaya, located in the Kamenski license in Russia’s Saratov region. Flow rates reported from the site show 2,500 bbl. per day of light, sweet crude from one zone, and two gas-bearing formations flowing a combined 550,000 cubic meters of sweet gas per day and 75,000 cubic meters of condensate. The Petrom well was drilled to 3,882 meters.

6 Egypt

An Apache Corp. new-field discovery is being reported in the Matruh Concession in the Western Desert of Egypt. The #1x Falcon tested 4,400 bbl. of oil per day from the Alam El Buieb (AEB-3D) formation. The discovery is east of Jade Field and southwest of the Adam discovery. The well also encountered hydrocarbon pay in the AEB-6 and Jurassic Safa formations that will be shut in until processing and transportation capacity is developed. A 52-ft. interval of Upper Safa tested at a rate of 11 million cu. ft. of gas and 415 bbl. of condensate per day. The AEB-6 tested 35 million cu. ft. of gas and 1,953 bbl. of condensate per day. An appraisal well is planned before year-end. Apache is based in Houston.

7 Angola

Cabinda Gulf Oil Co. Ltd. (CABGOC), a Chevron affiliate, announced a Block 0 discovery, offshore Angola. The #79-3XST1 was drilled in 397 ft. of water to 12,000 ft. CABGOC hit a 225-ft. net hydrocarbon pay zone in the Upper Pinda formation. The well was tested from a single 150-ft. perforated interval and flowed at a rate of 11.6 million cu. ft. of gas and 2,550 bbl. of liquid hydrocarbons per day. It extends a trend of undeveloped gas-condensate and oil discoveries in the Greater Vanza Longui Area that are currently undergoing appraisal. Chevron, through operator CABGOC, has a 39.2% interest in Block 0. Other partners include Sonangol, with 41%, Total E&P, with 10%, and Eni with 9.8%.

8 Uganda

In the Butiaba region of Uganda Block 2, Tullow Oil’s #1 Ngara exploration well encountered more than eight meters of net oil pay. The well is located about one kilometer from the crest of the structure and was drilled to 741 meters. Good-quality basal sands were encountered in a 17-meter gross reservoir interval with additional potential up-dip. The #1 Ngara is approximately three kilometers south of the #1 Ngege discovery and de-risks two adjacent traps within the Ngara fault block. The well is currently suspended as a future oil producer. London-based Tullow is currently active with partner Heritage Oil in #2 Ngassa in the Buitaba region.

9 China

Zhongyuan Oil Exploration Bureau, a subsidiary of Sinopec Group, Beijing, announced a field discovery in China’s Wulate Rear Banner, in the Inner Mongolia Autonomous Region. Initial drilling shows a proven reserve of about 19 million bbl. of sweet oil. Further testing will be carried out in a 388-sq.-kilometer area around the primary find.

10 China

State-owned China National Offshore Oil Corp. has made a discovery at the #20-2N-1 JinZhou offshore exploration well northeast of Liadong Bay, China. The well encountered 110 ft. of oil pay and flowed at an average rate of 1,900 bbl. of oil and 345 million cu. ft of gas per day. The #20-2N-1 JinZhou, which lies about four kilometers north of JZ 20-2 Field, was drilled to a total depth of 12,205 ft. in water depths of around 52 ft. CNOOC is now planning to appraise the find to determine its reserves and commercial potential.

11 China

Newfield Exploration of Houston is testing an appraisal well in China on its #7-2-1 Lufeng oil discovery in Block 17/08 in the Pearl River Mouth Basin. The appraisal well is designed to test an independent four-way closure downthrown of the oil find. The discovery well hit nearly 60 ft. of net oil pay. Block 17/08 is owned 100% by Newfield. The company is an oil producer in China through its 12% equity in the Anadarko Petroleum-operated Caofeidian Field complex in Bohai Bay.

12 Indonesia

Salamander Energy completed exploration well #1 South Sebuku (#1 SS) in the Bengara I PSC, East Kalimantan, Indonesia. The #1-SS well was drilled to 1,533 meters and encountered multiple gas-bearing sandstones in the Tabul and Meliat formations. During drillstem testing in the Tabul formation, one zone at 575 meters flowed at a rate of 7.4 million cu. ft per day. In the deeper Meliat formation, a single zone at 1,250 meters tested 3.4 million cu. ft per day. The well is currently suspended as a future producer and appraisal drilling is under review. London-based Salamander holds a 25% interest in the Bengara I PSC.